13 Observation
Section 6(4) of the ethical guidelines states that: “Observation may be decided when there is doubt as to whether the conditions for exclusion are met or as to future developments, or where observation is deemed appropriate for other reasons.”
Tabell 13.1 Companies under observation at the close of 2023
Company | Criteria | Topic |
|---|---|---|
Adani Ports & Special Economic Zone Ltd | War or conflict | Business association with the armed forces in Myanmar |
Astra International Tbk PT | Severe environmental damage | Deforestation |
Bombardier Inc | Gross corruption | Corruption |
Hyundai Engineering & Construction Co Ltd | Gross corruption | Corruption and bid rigging |
KDDI Corp | War or conflict | Business association with the armed forces in Myanmar |
Marfrig Global Foods SA | Severe environmental damage | Deforestation |
ORLEN SA | Human rights | Freedom of the press |
Pan Ocean Co Ltd | Environmental damage and Human Rights | Ship Recycling |
Petrofac Ltd | Gross corruption | Corruption |
Semen Indonesia Persero Tbk PT | Other particularly serious violations of fundamental ethical norm | Damage to prehistoric and especially important cultural heritage sites. |
Sumitomo Corp | War or conflict | Business association with the armed forces in Myanmar |
Supermax Corp Bhd | Human Rights | Poor working conditions |
In addition, Norges Bank is responsible for following up a further 12 companies which it has placed under observation at its own initiative with reference to the coal criterion.
The Council is responsible for following up the companies that Norges Bank has decided to place under observation in connection with a recommendation on observation or exclusion. At any time during the observation period, the Council may recommend that the company concerned be excluded or deleted from the observation list. In 2023, the observation of two companies was terminated. Five new companies were placed under observation during the year. At the close of 2023, the Council’s observation list numbered 12 companies.
During the observation period, the Council normally submits one or more observation reports to Norges Bank on each company which has been placed under observation at the Council’s recommendation. The Council obtains information from open sources, but can also investigate matters with the help of consultants. The observation reports are published on the Council’s website in the same place as the original recommendation.
The observation process depends on good cooperation between the companies concerned and the Council. A draft version of the observation report is sent to the companies for their comments before it is submitted to Norges Bank. Meetings are often held with the companies. In 2023, the Council met with two companies that were under observation and was in written communication with a further four companies.
Five of the companies under observation were added in 2023. A summary of the recommendations may be found in the previous chapter.